A manufacturer wishes to calculate the average cost to produce 8,500 widgets. A) Cost of materials = $3,500
B) Cost of labour = $700
C) Quantity = 8,500
Which formula should she use to determine the average cost of each widget?
Average cost = A + B + C
Average cost = (A + B)/C
Average cost = (C+B)/A
Average cost = A/C+B